Terms and Policies
Code of Conduct
MESSAGE FROM THE FOUNDER
Throughout all these years, CONEXÃO MALHAS E DESENVOLVIMENTO has based its actions on ethical and moral values. Our history of integrity is our greatest pride, and we must ensure that these values remain present in our daily lives. The Code of Conduct brings together the main guidelines for conducting our business and aims to ensure that everyone involved acts with integrity, guided by a set of values that reflect our principles and beliefs. The reputation and positive image of CONEXÃO MALHAS E DESENVOLVIMENTO are our greatest asset, resulting directly from the behavior and commitment of all directors, managers, partners, and employees to the principles established in this Code. By acting according to the guidelines established therein, we will act in accordance with the values of our Company. I am confident in everyone's dedication to adhering to and practicing this Code of Conduct. Together, we can surely build a better future for our Company and for our Society.
Santo Cipoloni Arelhano
ABOUT THE CODE OF CONDUCT
WHAT IS THE CODE OF CONDUCT? These are the principles of business conduct that define corporate expectations for all employees and partners acting on behalf of CONEXÃO MALHAS E DESENVOLVIMENTO. WHY DOES CONEXÃO MALHAS E DESENVOLVIMENTO HAVE A CODE OF CONDUCT? Because it summarizes compliance principles, highlights ethical issues that may have legal consequences if handled improperly, and provides guidance on the appropriate course of action to be taken. In summary, the Code provides rules and guidelines to help make the right decisions every day, in a way that promotes the business of CONEXÃO MALHAS E DESENVOLVIMENTO and maintains its tradition of ethical business conduct.
WHO MUST COMPLY WITH THE CODE? It applies to all "personnel" of CONEXÃO MALHAS E DESENVOLVIMENTO, including: employees, partners, third parties, and visitors.
WHAT DOES THE CODE REQUIRE ME TO DO? Everyone must be familiar with and comply with it. Each person should exercise good judgment in their decisions, always being mindful of the Code. We must also support others in complying with the code, which includes reporting any suspected violations. Anyone who fails to comply with the Code may face disciplinary action, including termination. The main duties of everyone acting on behalf of CONEXÃO MALHAS E DESENVOLVIMENTO are the following:
✓ Understand and comply with the law, procedures, and internal policies, as well as the Code of Conduct;
✓ Help build the company's ethical culture: by living the values of CONEXÃO MALHAS E DESENVOLVIMENTO, reporting suspected violations, and obtaining help to make tough decisions;
✓ Cooperate with any kind of investigation;
✓ Never retaliate against someone who reports a business concern; and
✓ No sale or business advantage is worth sacrificing our corporate reputation.
WHAT DOES THE CODE REQUIRE OF LEADERS? Managers set the tone for their teams. They are generally the first point of contact for employees when they have questions. Therefore, managers must:
✓ Set a strong example of ethical conduct;
✓ Provide training, education, and resources to support employees in complying with the Code of Conduct;
✓ Require employees and partners to read the Code as part of self-assessing their activities;
✓ Avoid and prevent retaliation;
✓ Encourage people to speak up if they have any concerns or questions;
✓ Discipline inappropriate conduct and reward good behavior; and
✓ Comply with the requirements of the Code and necessary escalations.
WHAT SHOULD I DO IF I BECOME AWARE OR SUSPECT INAPPROPRIATE CONDUCT? Any suspicion of a violation of law or the Code of Conduct must be reported, and you may do so anonymously if you prefer. Always use one of the options to ask a question or report a concern:
✓ Your management.
✓ Compliance Department
✓ Email: denuncia@conexaomalhas.com.br
HOW WILL THE CONEXÃO MALHAS E DESENVOLVIMENTO RESPOND TO THIS COMPLAINT?
All reports will be analyzed and responded to. If CONEXÃO MALHAS E DESENVOLVIMENTO deems it necessary, the facts will be investigated. The information contained in the report will be treated discreetly, confidentially, and respectfully by an ETHICS COMMITTEE, which has the duty to:
✓ Disseminate and uphold ethical principles and practices of the Code of Conduct;
✓ Clarify doubts, receive and promote suggestions for the improvement and updating of disciplinary norms;
✓ Receive, record, and investigate reports, whether anonymous or not, of misconduct or behaviors;
✓ Provide communication channels for receiving reports and promote the dissemination of this service in all areas;
✓ Apply disciplinary penalties corresponding to the seriousness of the acts committed in violation of the Code of Conduct and the laws;
✓ Attempt mediation of conflicts, seeking the prosperity of operations.
GENERAL PROVISIONS
This Code of Conduct will be distributed to all personnel of CONEXÃO MALHAS E DESENVOLVIMENTO, who may not claim, under any circumstances or for any reason, ignorance of the guidelines and principles contained herein. Violations of the provisions of this Code of Conduct will be duly punished and will subject offenders to disciplinary measures that include written warnings, suspension, and dismissal, regardless of any other legal consequences that may arise from it.
CONFORMITY
Our business: CONEXÃO MALHAS E DESENVOLVIMENTO has a reputation as an ethical and law-abiding company, which means that the company's staff comply with the law wherever they live or work. Except when prohibited by legislation, staff must report any suspicion of violation, whether of current laws or the Code of Conduct. CONEXÃO MALHAS E DESENVOLVIMENTO does not tolerate retaliation of any kind for reporting a concern about business conduct or for cooperating with any investigation. CONEXÃO MALHAS E DESENVOLVIMENTO expects such reports to be made in good faith. This does not mean you need all the information about the case; you should feel free to ask questions and report issues that concern you, without fear of retaliation. Reports or false or malicious allegations, however, are not considered made in good faith and may result in disciplinary action. CONEXÃO MALHAS E DESENVOLVIMENTO may be held responsible for the transgressions of third parties acting on its behalf. No staff member should knowingly allow a business partner or third party to engage in illegal activities and should ask questions and take steps to prevent such misconduct.
Be sure to communicate your concerns to your manager, the legal department, or the Compliance department.
ETHICAL CONDUCT IN BUSINESS
Ethical conduct in business requires more than mere compliance with the law; the Code of Conduct and the values of CONEXÃO MALHAS E DESENVOLVIMENTO typically establish a higher standard of requirements. Sometimes, however, there are no written rules. Still, personnel should use their best judgment to do the right thing. In other words, they should make ethical and appropriate decisions based on the core values of CONEXÃO MALHAS E DESENVOLVIMENTO.
When faced with the decision regarding what the correct action to take would be, make sure that the answer is “yes” to the 3 questions below:
1 - Is this action in line with the values of CONEXÃO MALHAS E DESENVOLIMENTO?
2 - Is this action capable of withstanding close scrutiny?
3 - Will this action protect the reputation of CONEXÃO MALHAS E DESENVOLIMENTO?
ANTI-BRIBERY, ANTI-CORRUPTION LAW AND POLITICAL ACTIVITIES
The personnel of CONEXÃO MALHAS E DESENVOLVIMENTO must never offer, execute, or accept any type of bribe, regardless of business customs.
The violation of this principle may result in dismissal, as well as imprisonment for the involved individuals, if the law is violated. A conviction for bribery may also lead to the loss of other business and damage to the reputation of CONEXÃO MALHAS E DESENVOLVIMENTO.
Bribery is a crime everywhere that CONEXÃO MALHAS E DESENVOLVIMENTO conducts business. Bribing individuals or government employees is against the law and the Code of Conduct.
Personnel must comply with all anti-bribery laws, including, among others, the Anti-Corruption Law, which prohibits any use of resources or assets of CONEXÃO MALHAS E DESENVOLVIMENTO to grant benefits, make payments, or any transfer of 1 •Is this action consistent with the values of CONEXÃO MALHAS E DESENVOLVIMENTO? 2 •Can this action withstand close scrutiny? 3 •Will this action protect the reputation of CONEXÃO MALHAS E DESENVOLVIMENTO? 5 values [such as donations] illegal or improper, whether to clients, the government, or any other person.
The use of illegal or improper payments/benefits involves actions aimed at improperly obtaining a government action or other entities, entering into a contract, or any other benefit: commercial, tax, etc.
This prohibition applies to direct and indirect payments/benefits [made through third parties] and aims to prevent bribes, kickbacks, or any other type of benefit in exchange for an undue advantage.
Each individual is responsible for knowing and applying the rules and precautions outlined in this Code, as well as the internal procedures and policies.
Facilitation payments are small payments to expedite mandatory actions from the government or other entities, for example: utility connections, installations, etc. Such payments are prohibited.
CONEXÃO MALHAS E DESENVOLVIMENTO respects the right of employees to participate in political processes and communicate with their elected representatives, using their own time and resources. Examples of CONEXÃO MALHAS E DESENVOLVIMENTO's resources include our facilities, emails, computers, phones, and work time, which should not be used for such purposes. Examples of political activities include campaigns, distribution of publications, fundraising, and hosting events in facilities or during work hours. Do not give the impression that CONEXÃO MALHAS E DESENVOLVIMENTO sponsors or supports any kind of action equivalent to this political theme.
GIFTS, ENTERTAINMENT, AND TRAVEL
The exchange of appropriate business gifts, entertainment of clients during meals and events, and offering business travel and accommodation are common ways to strengthen business relationships, educate clients about CONEXÃO MALHAS E DESENVOLVIMENTO and its products, and support business.
When managed correctly, these are legal business practices, in line with the Code of Conduct, but it is important that all standards are followed and approved, and precise accounting records are maintained to reflect these expenses.
Any and all gifts or business entertainment, given or received, must be occasional and reasonable in terms of cost and quantity.
Bribery is illegal; therefore, avoid situations where gifts, meals, and similar courtesies may affect or even compromise your own business judgment or someone else's objectivity. Comply with all applicable laws and the principles of the Code of Conduct.
COMPETITION LAW, ADVERTISING, AND PRODUCT PRESENTATION
CONEXÃO MALHAS E DESENVOLVIMENTO engages in fair competition and complies with all competition laws and regulations. Certain activities, such as agreements among competitors to fix prices, always represent a violation of these laws. Many other business activities, such as certain restrictive supply or distribution contracts, as well as the misuse of a strong market position to harm competition, may violate these laws. Do not enter into agreements with competitors or potential competitors regarding prices, sales conditions, sales plans, bids, costs, profits, volumes, or any other aspect of competition. Do not even discuss or exchange confidential information. Do not disclose non-public material information about CONEXÃO MALHAS E DESENVOLVIMENTO. Trust is the foundation of CONEXÃO MALHAS E DESENVOLVIMENTO's business relationships with its clients, partners, and end-users. Our personnel must present our products honestly and accurately and comply with all rules regarding ethical conduct in negotiations.
BUSINESS PARTNERS
Business partners are an important part of the operations of CONEXÃO MALHAS E DESENVOLVIMENTO. Any inappropriate conduct by our partners can have a negative impact on our image and reputation and may expose us to civil or criminal liability or other penalties. For this reason, our Code should serve as a reference for our partners in conducting their business with CONEXÃO MALHAS E DESENVOLVIMENTO or on behalf of CONEXÃO MALHAS E DESENVOLVIMENTO, when applicable. Business partners or business associates include all contractors, directly or indirectly. This includes, for example, agents, brokers, intermediaries, advisors, consultants, representatives, travel agents, general freight forwarders, customs or visa agents, tax consultants, lawyers, attorneys, accountants, etc. When selecting a business partner, it is essential that they understand our Values and act in a manner consistent with the principles of this Code of Conduct. Any inappropriate conduct by business partners could harm our image and expose CONEXÃO MALHAS E DESENVOLVIMENTO and employees to various penalties.
SUPPLIERS
CONEXÃO MALHAS E DESENVOLVIMENTO must select its suppliers based solely on clear, objective, and non-discriminatory criteria, such as: necessity, quality of product or service, price, reputation, expertise, and their environmental and social performance. 7 Every decision must have technical and economic justification, and favoritism of any kind is not allowed. It is essential that our relationship with suppliers is based on integrity. It is equally important that the selection of suppliers considers not only the quality and competitiveness of their products and services but also their adherence to the values and principles established in this Code. When choosing a supplier, you must take all necessary care and abstain from participating in the decision if there is a conflict of interest. Inappropriate conduct by third parties can harm our image; therefore, it is very important that our suppliers and partners undergo a rigorous evaluation to ascertain their validity, reputation, integrity, solvency, legal business practices, and their commitment to comply with applicable laws and regulations. The same is expected of their management practices, which must respect the rights of all employees, the environment, and provide a safe and healthy workplace.
CLIENTS
CONEXÃO MALHAS E DESENVOLVIMENTO must convey to its clients a fair, accurate, and impartial image of the competition and the Company's employees. Clients are the reason for the existence of CONEXÃO MALHAS E DESENVOLVIMENTO, and earning their preference is the goal of all of us. One cannot win clients without adopting an ethical and integrity-driven stance at all times in this relationship. CONEXÃO MALHAS E DESENVOLVIMENTO values client satisfaction by providing responses and solutions that meet their interests within the established deadlines. Therefore, CONEXÃO MALHAS E DESENVOLVIMENTO and its employees are expected to:
✓ Act with honesty and transparency. Never offer or promise something that you know cannot be fulfilled;
✓ Serve clients effectively, with integrity, courtesy, and respect;
✓ Be receptive and adequately address the suggestions and criticisms received;
✓ Make decisions impartially, ensuring compliance with current legislation and internal policies; and
✓ Identify client needs and be capable of meeting them.
✓ Personal ties between employees and clients must be clearly and transparently presented and will be evaluated by CONEXÃO MALHAS E DESENVOLVIMENTO.
GLOBAL TRADE
CONEXÃO MALHAS E DESENVOLVIMENTO complies with all applicable import, export, and trade compliance laws whenever the Company conducts business. Many of these laws are designed to ensure that transactions are not used for money laundering, others prohibit companies from engaging in commercial boycotts, and laws govern imports and exports, which include:
✓ Keeping appropriate records of all business relationships, as well as retaining the proper licenses;
✓ Ensuring that cross-border transfers of information, technologies, products, or software comply with the laws governing those relationships; and
✓ Consulting the proper resources when conducting business involving countries or individuals subject to sanctions.
GENERAL PROVISIONS Maintain complete and accurate records of all transactions conducted and comply with all laws and regulations regarding money laundering.
REPORT ANY SUSPICIOUS ACTIVITY
CONFLICT OF INTEREST
Avoid situations where your personal interests may influence – or unduly influence your business judgment. This is known as Conflict of Interest. It is each individual's responsibility to make impartial decisions, excluding personal, financial interests, or anything that might in some way affect their own judgment.
Even the idea that personal interests may influence business judgment can harm the reputation and business of CONEXÃO MALHAS E DESENVOLVIMENTO.
The relationship of kinship and emotional relationships between employees is allowed, provided there is no level of hierarchical subordination, management decision influence, or conflict of interest. Any exception to this rule must be approved by the ETHICS COMMITTEE.
Relatives include: children, grandchildren, great-grandchildren; spouses/partners, parents-in-law, siblings-in-law, sons-in-law, and daughters-in-law; parents, siblings, nieces, and nephews; grandparents, uncles, cousins, second cousins, and great-uncles and aunts. Hierarchical subordination is understood as the existence of any type of direct or indirect subordination.
Avoid mixing personal or business relationships, for example, by hiring a family member/friend as an employee or supplier, purchasing assets or services from a family business on behalf of CONEXÃO MALHAS E DESENVOLVIMENTO. Obtain the necessary approvals if the hiring process does not comply with internal standards.
Above all, you must be able to recognize situations where you may be conflicted and refrain from influencing or making the decision. You should avoid negotiations that cause or seem to cause conflicts of interest, always keeping yourself out of any decision-making process that influences, or may be perceived as influencing, your ability to make an objective decision and fulfill your responsibilities.
Some common conflicts of interest include:
✓ Seeking, granting, or maintaining business opportunities for personal gain or for the advantage of family members or close friends;
✓ Receiving money, property, services, or other financial personal benefits, directly or indirectly, from suppliers or third parties conducting business or proposing negotiations with CONEXÃO MALHAS E DESENVOLVIMENTO.
✓ Influencing the outcomes of competitions involving supply proposals;
✓ Engaging in external activities involving information or knowledge of CONEXÃO MALHAS E DESENVOLVIMENTO that should not be disclosed; and
✓ Having a personal relationship with a client, supplier, competitor, or another related company, and your position at CONEXÃO MALHAS E DESENVOLVIMENTO allows you to favor and thus influence the performance of those companies.
Any situation that can be interpreted as a "conflict of interest" should be avoided. In any decision or business operation, the personnel of CONEXÃO MALHAS E DESENVOLVIMENTO are required to act in the company's best interest and not take personal interests into account, refraining from performing any operation or decision when they find themselves in a conflict of interest situation.
INFORMATION SECURITY AND CONFIDENTIAL INFORMATION
THE CONEXÃO MALHAS E DESENVOLVIMENTO must take all necessary measures to ensure the protection of information. We all have the obligation to ensure the confidentiality of information.
The confidentiality and privacy of information from THE CONEXÃO MALHAS E DESENVOLVIMENTO, clients, suppliers, and business partners must be respected. In some cases, the use of such information may even infringe national and international laws and regulations, especially if used for one's financial benefit or other personal advantages.
Employees must treat all non-public information confidentially. This means protecting the information from unauthorized access or disclosure.
Likewise, we are responsible for the protection of confidential information entrusted to us by clients, suppliers, and other business partners with the same care and rigor with which we protect our own information.
For this reason, considering the extreme importance of information confidentiality, signing the "confidentiality agreement" is mandatory for all employees, interns, apprentices, suppliers, partners, service providers, and consultants.
Information about intellectual property that one has access to as a result of their activity must also be treated confidentially and carefully.
Intellectual property refers to trademarks, patents, industrial designs, domain names, copyrights, innovations, improvements, processes or products, projects or models, financial, commercial or market information, ideas, knowledge, or any other non-material activity developed at THE CONEXÃO MALHAS E DESENVOLVIMENTO or through its hiring, among other items that would benefit a competitor if known.
The result of intellectual work and strategic information generated at the Company is the exclusive property of THE CONEXÃO MALHAS E DESENVOLVIMENTO.
To ensure the protection of information, it is important to observe certain guidelines and procedures:
✓ You must not leave privileged information exposed at workstations/desks, printers, or meeting rooms, whether they are research, business methodologies, or any reports related to the strategy of THE CONEXÃO MALHAS E DESENVOLVIMENTO or that have commercial relevance;
✓ Whenever you leave your workplace, you must lock your computer to prevent others from using it in your absence; ✓ You must not install pirated or free software [considered freewares] on your computer;
✓ You must not share, under any circumstances, your credentials, whether login or password. These data are individual and non-transferable, and their safeguarding, confidentiality, and maintenance are the responsibility of the employee, provider, or third party;
✓ You must not allow unauthorized access to another person to information or resources under your responsibility;
✓ You must not discuss, in person or by phone, matters involving confidential or privileged information when in public places such as elevators, restaurants, taxis, airports, or airplanes, as well as in virtual environments, such as chat rooms, blogs, or social networks;
✓ You must not exchange confidential or privileged information with competitors;
✓ All files and documents containing confidential information must be disposed of securely;
✓ All files and data related to professional activity, created, received, or stored in our systems, whether on the corporate network or mobile phone, are the property of THE CONEXÃO MALHAS E DESENVOLVIMENTO and constitute commercial and legal assets of the company.
✓ Internet and telephone access, as well as the use of software, hardware, equipment, and other assets of THE CONEXÃO MALHAS E DESENVOLVIMENTO must be directed exclusively to the exercise of professional activity.
✓ According to legislation, THE CONEXÃO MALHAS E DESENVOLVIMENTO is responsible for the actions of its employees and business partners and must, at its discretion, use and monitor any information transmitted or residing in these means. This rule covers information written or stored in electronic systems, email, computer, mobile phone, and any other associated means [such as USB drives, external disks, virtual storage, CD/DVD, among others]. Thus, all corporate equipment and resources may be monitored.
USE OF ASSETS
The proper care and use of the assets owned by CONEXÃO MALHAS E DESENVOLVIMENTO contribute to the pursuit of productivity, results, and the sustainability of the business. Employees must protect the company's assets and resources with the same care they apply to their personal belongings.
The equipment and facilities of CONEXÃO MALHAS E DESENVOLVIMENTO are intended exclusively for use in their activities and cannot be used for personal purposes.
Examples of assets of CONEXÃO MALHAS E DESENVOLVIMENTO:
✓ Facilities, equipment, and materials;
✓ Computers and software;
✓ Internet access;
✓ E-mail;
✓ Phones, landline or mobile;
✓ Company money;
✓ Printers and copiers;
✓ Company vehicles;
✓ Confidential/patented information; and
✓ Company trademarks.
Employees must pay special attention when using IT (Information Technology) resources provided by the Company, such as email and internet access. The transmission or access to inappropriate content is not permitted, namely, content that is contrary to the policy of CONEXÃO MALHAS E DESENVOLVIMENTO or to legislation.
Examples of inappropriate content include:
✓ Pornography and obscenities;
✓ Activities against public or third-party property;
✓ Discrimination;
✓ Terrorism;
✓ Selling products unrelated to the business;
✓ Chain letters;
✓ Political-partisan propaganda; and
✓ Games.
INTERNAL CONTROLS, FINANCIAL REPORTS, AND DOCUMENT RETENTION
The team at CONEXÃO MALHAS E DESENVOLVIMENTO is responsible for maintaining the integrity of business documents and financial reports.
The numerous business and financial records, including, among others, purchase orders, contracts, production records, invoices, regulatory reports, emails, spreadsheets, telephone records, etc. must be ensured by those who create and those who use such information, so that they reflect the true nature of the operations of CONEXÃO MALHAS E DESENVOLVIMENTO.
All employees and partners are required to fully cooperate and provide complete information when requested by internal auditors and legal.
RESPECTFUL WORKPLACE
CONEXÃO MALHAS E DESENVOLVIMENTO values its people and strives to create a work environment that reflects and values the best in each of us.
Any form of harassment or unprofessional or inappropriate behavior, whether illegal or not, interferes with this goal and WILL NOT BE TOLERATED. Discrimination is also ILLEGAL and PROHIBITED.
This principle applies whenever you are at work and at work events, or any activity sponsored by CONEXÃO MALHAS E DESENVOLVIMENTO.
Definition of Moral Harassment: Any abusive conduct [gesture, word, behavior, attitude, etc.] that, through its repetition or systematization, attacks the dignity and/or mental and/or physical integrity of a person, threatening their job or degrading the work environment.
Definition of Sexual Harassment: Broadly speaking, it is any form of non-consensual sexual advance. Sexual harassment in the workplace is characterized by some threat, insinuation of threat, or hostility against the subordinate aiming for some goal. Classic examples are conditions imposed for a promotion involving sexual favors or the threat of dismissal if the employee refuses their superior's flirtation.
Abuse of authority and any offensive or intimidating behavior is EXPRESSLY PROHIBITED.
Employees and partners should feel free to report their concerns and raise issues without fear of retaliation, as these are prohibited and not tolerated.
There is no distinction based on race, nationality, religious belief, physical disability, age, sexual orientation, union affiliation, or political party in our administrative and/or productive processes.
Managers are responsible for ensuring that the Company provides a fair and respectful work environment, addressing complaints promptly and effectively.
Regarding the commitment to Human Rights, CONEXÃO MALHAS E DESENVOLVIMENTO fully rejects any form of child or forced labor, nor imposes working conditions that violate legalities. Likewise, CONEXÃO MALHAS E DESENVOLVIMENTO must not engage with companies that do not comply with these obligations, nor purchase their products or services.
WORK ENVIRONMENT, HEALTH AND SAFETY
THE CONEXÃO MALHAS E DESENVOLVIMENTO is committed to providing all employees with a safe and productive work environment. THE CONEXÃO MALHAS E DESENVOLVIMENTO believes in and actively promotes a culture of accident prevention and risk awareness among employees, particularly by providing adequate training and information. We expect everyone to share this commitment and promote awareness of the importance of this issue, alongside the preventive measures established by THE CONEXÃO MALHAS E DESENVOLVIMENTO for the protection of your health and safety.
Preventing work accidents and occupational diseases, in particular, is everyone's responsibility. While THE CONEXÃO MALHAS E DESENVOLVIMENTO invests in equipment, resources, development of standards, and training, employees must comply with all laws, policies, practices, and procedures related to the topic. Additionally, employees and partners must demonstrate personal commitment to safety. For this reason, we all have the obligation to:
✓ Know and comply with the policies, standards, and procedures for protection and safety, looking out for your own safety and that of anyone else involved in our activities;
✓ Bring to the attention of a supervisor any situation that threatens your physical integrity or that of your colleagues in the workplace;
✓ Identify and correct activities carried out outside safety standards;
✓ Report unsafe situations that you have identified and seek resolution with perseverance and an appropriate sense of priority; and
✓ Not work or visit areas within the company without individual protective equipment [PPE] or uniforms, when the use of these is mandatory.